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Consider a country that produces and consumes Good X and Good Y. True or False : A tax on the production of Good X always
Consider a country that produces and consumes Good X and Good Y.
True or False: A tax on the production of Good X always has the same impact as an equivalent tax on consumers of Good X because the tax creates a wedge between the price that consumers pay and the price that producers receive. All points will be awarded based on your explanation. Feel free to use a diagram to show your answer.
[Note: A statement can be false because a part of the statement is false or because the logic connecting parts of the statement is incorrect.]
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